Nissan meets to replace Ghosn, as tensions with Renault grow

TOKYO: The board of automaker Nissan meet yesterday to discuss replacing former chairman Carlos Ghosn after his arrest for financial misconduct, as tensions grow in the firm’s alliance with Renault.

The Japanese company removed Ghosn from his post last month after he was detained on allegations of under-reporting his salary.

But it appears unlikely to agree Monday on a permanent replacement for him, in part because of open discord in its alliance with French automaker Renault.

Nissan itself faces charges for allegedly submitting financial documents that understated Ghosn’s pay, and Renault is now reportedly seeking more sway on the Japanese firm’s board.

The Wall Street Journal reported Sunday that Renault urged Nissan in a letter to hold a shareholders meeting to discuss Renault’s representation on the firm’s nine-member board and within its top management.

It warned that Nissan’s indictment “creates significant risks to Renault, as Nissan’s largest shareholder, and to the stability of our industrial alliance”, the Journal reported.’

A source with knowledge of the issue confirmed that Nissan had receivedtheletterandwasplanning an extraordinary shareholders’ meeting in January.

Renault’s letter is the latest sign of the tensions in the alliance that groups the firm with Nissan and Mitsubishi Motors – a partnership that Ghosn forged and was often credited with holding together.

While Nissan and Mitsubishi Motors quickly removed Ghosn from leadership positions after his arrest, Renault has kept the auto executive on as CEO and chairman. And while Nissan CEO Hiroto Saikawa launched a broadside against his former mentor shortly after his arrest, describing his “dark side”, Renault has approached the allegations more cautiously.

The decision on replacing Ghosn at Nissan is being led by an advisory committee that includes a former Renault executive, and Japanese media reports suggested it was unlikely to reach a decision on Monday.

“It slows things down, but it isn’t the end of the world,” a source close to the issue told AFP.

“We need to let them talk and decide properly. That’s more important than rushing.” — AFP